HARRIS CORPORATION
Melbourne, FL
(407)-727-9100

ALEXANDRIA, Va., July 25, 1996/FOOLWIRE/ --- HARRIS CORPORATION <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:HRS)") else Response.Write("(NYSE:HRS)") end if %> today reported net income of $1.55 per share for the just-completed fiscal fourth quarter, beating First Call consensus estimates of $1.51 per share. These results were $0.19 better than the year-ago period and up $0.41 sequentially.

Revenues in the fourth quarter were $1.012 billion, up 10% over the same period last year, $932.6 million. Net Income for the fourth quarter rose 14% to $60.3 million over $52.9 million last year.

For the fiscal year, net income was up 15% at $178.4 million versus $154.5 million last year. That puts EPS for the FY at $4.58 against $3.95, an increase of 16%. This was possible as sales were $3.621 billion versus $3.444 billion last year, an increase of 5%.

GROWTH

Phillip Farmer, President and CEO, divided his discussion into Harris's different business sectors. For the year, the communications sector's sales were up 16% and net income was up 31% on solid growth within the microwave radio product group. The return on sales was on their target number of 5%. New orders were up 17% as all businesses were performing well. The next fiscal year promises more of the same with sales and profits expected to be greater than 15%. DTV is a new market which will contribute to this growth as will PCS infrastructure development.

The Lanier Worldwide had an excellent year also. For the year, sales were up 9% and net income rose 24%. Internal growth from existing businesses was excellent. International business has improved and will continue to do so going forward. Harris is very optimistic about the health care information systems prospects for late 97 and beyond. Net income is expected to remain around 24% going forward.

The earnings for the electronics sector systems were lower due to previously announced losses in the sector's energy management systems business. Their was an $8.0 million loss after tax. Farmer maintains that Harris has the best energy management product available.

Looking forward Farmer believes Harris will have another excellent year. He is bullish on the semi conductor business as they have gotten out of bad businesses like memory and micro processors. He sees the microwave radio products as a source of excellent margins and increasing volume. The power business accounts for 40% of sales in semi conductors and will improve going forward. There is a new power FAB scheduled for nest spring/summer which will have 8" capability. Overall strategy centers around net income. While operating margins have decreased slightly, the net income has continued to improve.

Harris develops electronic equipment, systems, and components. The company produces electronic equipment, such as communication systems for military and space programs, semiconductors for various civilian and military customers, and communication equipment for the broadcast and telecommunication industries. Its Lanier Worldwide subsidiary manufactures office equipment, including copiers, dictation systems, and fax machines, as well as speech-recognition systems. Harris markets these products internationally. Business in the U.S. accounts for 30% of sales.

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